5 Popular Reseller Hosting Myths

James Manner
by James Manner 29 May, 2014

Reseller hosting is a very popular option of making money online. While thousands of entrepreneurs all over the globe have managed to build their own branded lucrative businesses by reselling Web hosting solutions, others still hesitate over going into this venture, being influenced by various misconceptions and myths that circle around. Therefore, let's clear the digital air and bust the top five reseller hosting myths.


Myth # 1: Reselling Web Hosting Is Too Complicated

At first sight, the reselling Web hosting business may seem as something too complicated and obscure. However, it is one of the easiest and most convenient ways to start your own online venture. Let's go down to the essence of reseller hosting. It presents a specific kind of Web hosting services implying that a user rents a server or its certain portion with the full right to split available server resources (disk storage space, bandwidth volume, CPU, RAM, etc.), create several smaller plans, typically shared hosting accounts, and then resell them at his/her own individual prices.


In other words, a reseller acts as a middleman between a large Web hosting company and end clients. The extra value you add to every new hosting plan is actually what is going to be your income. What's also advantageous about building your own online business on the reseller hosting platform are minimal investment and effort involved in the process. Actually, while starting up your own Web hosting business, you will avoid huge expenses along with all the hassles related to building or renting a data center, purchasing costly server hardware and equipment, setting physical and virtual security systems, hiring professional staff, etc.


Myth # 2: Everyone Will Know You Are Just a Reseller

The next misconception typically follows the first one - it will be easy to understand that you are a hosting reseller. While people naturally opt for direct business-to-business relations, your chances of gaining customers may be very low. Luckily, this is only a myth. In fact, Web hosting companies, especially established ones, provide 100 percent anonymity guarantee. You can resell Web hosting services under your own brand name, and your clients will never know that you are just a middleman. In other words, you will operate as an absolutely independent Web hosting provider.


Myth # 3: Hardware Knowledge Isn't Necessary

There are always resellers who become victims of their misconception that they can get on well without knowing server hardware from head to toe. Frankly speaking, your insufficient knowledge of Web hosting plans you offer may turn into a high risk of losing your clients. 


In such a way, even though you are just a reseller for server hardware and related hosting plans that are owned by your hosting provider, you should have comprehensive knowledge and understanding of all technical aspects, including hardware capabilities, limitations and using specifications, so that to be able to provide your clients with any necessary information as well as help them make better decisions. 


Myth # 4: Inevitable Challenge of Supporting Your Hosting Clients

Another popular myth about reseller hosting challenges is the headache of providing your clients with technical support and assistance, while being in the middle. Actually, when partnering with an established Web hosting company, a reseller is obviously relieved from all the associated hassles, including hiring support staff, managing server setup, reboot, upgrade or, for example, dealing with migration or system administration issues. Typically, your Web hosting company takes care of everything.


Myth # 5: High Market Competition Leads to Low Profit Potential

The high competition of the modern Web hosting market makes some people hesitate over this opportunity to start their own venture. However, just take into consideration that today almost everyone needs an online presence. As you surely know, no single Web project can appear and run properly on the Internet without being hosted somewhere. This creates an ever-growing demand for Web hosting services. Furthermore, if you are a Web designer or developer, reseller hosting services can provide you with an additional significant advantage by attracting new prospective clients - today's consumers highly appreciate the convenience of getting everything just from one place.


Have you ever used reseller Web hosting? Perhaps, you are aware of some other myths and misconceptions about reseller hosting? We'd love to hear about your experience and ideas in the comments below.


About the Author


James Manner is a community and PR manager at Premium Reseller hosting provider, an established company offering Windows reseller hosting services and Linux reseller hosting solutions in U.S., U.K. and Singapore.